Should I rent a house and save 2.5 million in 5-6 years and cash in a house, or should I just get a house loan early?

[rschlap]

@ccm500 Hi! Thank you for this. Looks like content po kayo with renting. Para ngang less stress pag renting. Di po kayo nagwoworry na nagtataas prices ng houses habang natagal?

 

[ccm500]

@rschlap Nope. I am not planning on living in the city where cost is high. Sa province mura pa naman. If you have 4-6M stashed kahit small house lang in a 500sqm lot is good enough. Sariwang hangin, cold breeze, etc.

 

[rschlap]

@ccm500 Ooohh. Not for me yung probinsya life unfortunately but this is a really really great retirement plan

 

[ccm500]

@rschlap if you want the city life you have to shell out more money. more money means you need to save more. you have to increase your monthly income as well.

 

[devonrestored]

@rschlap Your concern that property values will climb faster than you can save is valid. If you are stable in staying put and savings is enough to ride out possible layoffs, then better to buy. I expect property values in high growth areas of Philippines to be a great opportunity.

 

[goodnesskindness]

@ccm500 How do u manage your rent and savings at the same time? I cant seem to juggle both

 

[ccm500]

@goodnesskindness Live within my means. Also lucky enough to earn enough to save enough.

 

[spacehistory]

@ccm500 True. Madali rin lumipat ng lugar o bansa. Nasa Ireland na ako now at dalawang maleta lang dala ko ng dumating dito with peace of mind at liquid (except MP2) investments.

 

[nato12]

@ccm500 Yes. I'm renting with my partner as well. Mas convenient lalo na pag ayaw mo sa kapitbahay kasi maingay Pwede kang lumipat anytime unlike pag don ka na talaga nakatira. We're also planning to save muna since di naman sure ang corpo. world. Baka next year kasali ka na pala sa layoff

 

[potski]

@rschlap Rent. Gives you so much flexibility, especially makes migration easy.

 

[rschlap]

@potski This is very interesting. Wfh ako and bet ko sa pinas kasi mababa cost of living. Especially if UK/US money yung kinikita ko.

Never thought of migration but flexibility is a good point.

I'm someone that lives simple though. Content na sa bahay lang basta may mauuwian. Will consider if may need ako lumipat lipat in the future

 

[kymphony]

@rschlap I bought my first condo when I was 29 while renting. My income back then was only 37k. Rent was 6k for a room share, and 21k for M.A.

I worked numbers of side hustles (plural) just to keep my expenses at bay.

I was able to pay it off in 4 years.

I moved out 2 years back and got it rented, mahirap magpa rent. Ang baba ng rate (only 20k) for Ortigas Center Studio unit.

Getting your own place now will be about 6M (depende sa location, size, developer) - madami factors.

If you intend to live independently, I think you are now doing it while renting.

Im not an expert pero my friends who have been renting since I got my place are still renting at almost the same rate they were paying 10 years back - 8k for a room.

May perks ang pagbili. Pero if you are looking to get into marriage, having kids, or maybe possibly moving out of Ph, mas makakagalaw ka nang walang binayarang bahay or condo.

 

[resjudicata]

@kymphony excellent points. Mobility talaga advantage ng pagre-rent vs. owning.

 

[kymphony]

@resjudicata Yeah, kapag nag rent ka, after a year kung sawa ka na sa kapit bahay mo, then lipat. Mahirap maglipat? Madali lang actually. Pinapahirapan lang natin. Hhahaaa

Instant Cleaning din ng closet para sa mga lumang damit.

Owning, yan ka na. Forever until you pay it off.

 

[rschlap]

@kymphony Whoa! Laki po ng 21k M.A. and you managed to pay it out in 4 years? Maybe because I'm just new kaya natatakot ako mag M.A. na 17k+, especially contractor lang ako.

That's true nga rin po. Parang super less stress pag rent lang. 7k full house na huhu.

I have no family to lean to so nakakatakot din pag what if nothing works out sa renting and I be homeless aksgkac

 

[kymphony]

@rschlap Mababa lang kasi yung nakuha kong price. Current market price ng condo na katabing building is already around 8M Studio Unit.

Yung akin nakuha ko WAAYYYYY LESSS than that amount.

May kasama din itong restructure payments annually na medyo mataas - pinagipunan ko din talaga.

Kapag gusto mo magkaroon ng sarili mong house, huwag ka matakot sa MA. Kasi at the end of the day, same situation ka kapag renting, if you'll end up paying close to 20k for the convenience na gusto mo.

Or pay 8k na may 3 hour (ave) daily commute.

We choose our poison lang din.

 

[jspons89]

@rschlap

with you monthly salary, I doubt you've go homeless. You know your way when it comes to your finance so it doesn't sound like you'll let it come to that point.

I only earn 21-25k a month and renting for 5500. I have a bit of savings but one major problem could leave me homeless. Left my toxic household eh and im just 21 years old. tuff life ig lmao

 

[spacehistory]

@kymphony May kaibigan ako na ganito. Bumili ng condo pero eventually binenta kasi talo raw sya mas mura rent sa ibang unit with bigger space.

 

[stanthejesuslover]

@rschlap Use this rent vs buy to own calculator
https://www.hoppler.com.ph/rent-vs-buy-calculator

Also factor in if you still want to live in the philippines after x number of years.

 

[resjudicata]

@rschlap Buy. I had the same mindset as others dati, pero napagod rin ako magrent. Kasi una, even the furnitures I buy low quality, bili ng bili kasi depende sa sizes of the houses I rent. 2nd, pag nagbago isip ng landlord, minsan rude pa, wala ka choice but umalis.

Naging eye opener sakin nung may target home kami, its 1.5m at that time, 2 years later, almost 3m na ang value.

Buy a house, kung kaya mo magsave ng millions in a few years, yung masesave mo, pay mo towards the principal. Get a housing loan under pagibig with their longest term. Para kung mag struggle ka financially, di masyado mabigat, then if you can pay extra, ibayad mo sa principal mo. Sayang yung pera na napupunta lang sa landlord mo. I regret waiting too long to buy, we rented for almost 7 years. Kung sa MA ko nalang binayad edi malapit na sana ako matapos ngayon.,

Wag ka manghinayangan sa interest. Theres no escaping it, you just need to be wise. If wait to save, time alone is an interest, plus the money you pay your landlord. Sayang lang.

Just be wise lang sa paghanap ng bahay. Make sure reputable ang developer mo.